Dollar and US Treasury yields fell as concerns grew over the sustainability of a debt‑financed AI investment boom. JEFFERIES economist Mohit Kumar projects the US will invest the equivalent of 2.5–3% of GDP in capital expenditure and AI infrastructure over the next three years, a scale larger than any prior US infrastructure expansion. He warns that a slowdown in AI infrastructure buildout would materially affect suppliers and broader US economic activity.

2026-10-16

Dollar and US Treasury yields fell as concerns grew over the sustainability of a debt‑financed AI investment boom. JEFFERIES economist Mohit Kumar projects the US will invest the equivalent of 2.5–3% of GDP in capital expenditure and AI infrastructure over the next three years, a scale larger than any prior US infrastructure expansion. He warns that a slowdown in AI infrastructure buildout would materially affect suppliers and broader US economic activity.